Manufacturers Association of Nigeria (MAN) has raised concerns regarding the proposed implementation of the Expatriates Employment Levy (EEL), cautioning that it could exacerbate the challenges faced by the manufacturing sector. The association, represented by its Director General, Segun Ajayi-Kadir, emphasized that the sector is already under significant strain, with 767 companies shutting down in 2023 alone.
In a statement released on Tuesday, MAN highlighted the sector’s declining capacity utilization, currently standing at 56%, coupled with interest rates exceeding 30%. The imposition of the EEL, particularly amidst a forex crisis and inventory of unsold finished products amounting to N350 billion, would further burden the sector.
MAN underscored that the manufacturing industry cannot bear an additional financial burden, especially considering the recent distress experienced by 335 companies. The association expressed concern that the EEL, coupled with existing costs such as the $2000 CERPAC fee for expatriates, would deter both local and foreign investment.
The potential repercussions of the EEL on the manufacturing sector, including hindering foreign direct investments (FDIs) and discouraging local investors, are significant. Given the evident economic downturn, MAN urged the government to reconsider the implementation of the levy, emphasizing the need for supportive policies to revive the sector.
